Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
DATE:	November 5, 2014
CC:	Casey Toomay, Assistant City Manager
RE:	HERE Kansas, LLC Project Industrial Revenue Bond Ordinance

Please place the following item on the November 11, 2014 City Commission consent agenda:

Adopt on first reading, Ordinance No. 9053, authorizing the issuance of Industrial Revenue Bonds for the HERE Kansas, LLC Project at 11^th & Indiana

Background:

Earlier this year, the City Commission adopted Resolution No. 7075, a Resolution of Intent to issue industrial revenue bonds (IRBs) for the HERE Kansas Project, a mixed use redevelopment project proposed for 11^th and Indiana.  The purpose of issuing the Resolution of Intent and issuing the IRBs is for the company to access a sales tax exemption on construction materials utilized for the project.  With the approval of the Resolution of Intent, the company can receive a sales tax exemption certificate for the project.  This certificate has been received by the company.  The approval of the ordinance for the bond issuance is a formality with the action at this point, as the sales tax exemption certificate has already been received by the company. 

As the City Commission is aware, IRBs are a conduit financing mechanism to enable a company to receive certain benefits, in this case a sales tax exemption on the construction materials.  The company is solely responsible for any bond payments, and the costs related to the transaction, with no financial obligations on the city.

Recommended Action:

Adopt on first reading, Ordinance No. 9053, authorizing the issuance of Industrial Revenue Bonds for the HERE Kansas, LLC Project at 11^th & Indiana